Islamabad, Jan 1: Pakistan’s annual consumer inflation rate, measured by the Consumer Price Index (CPI), declined to 4.1 percent in December 2024, marking the lowest level in over 6.5 years (81 months), according to the Pakistan Bureau of Statistics (PBS). This was a significant drop from the 29.7 percent inflation recorded in December 2023, and from the 4.9 percent recorded in November 2024.
The first half of the fiscal year 2025 (1HFY25) saw an average inflation rate of 7.2 percent, a sharp decline from the 28.8 percent recorded in the same period of the previous year (1HFY24), as reported by Arif Habib Limited (AHL).
On a month-on-month basis, inflation rose by 0.1 percent in December 2024, a slowdown compared to the 0.5 percent increase in November and a 0.8 percent rise in December 2023. Breaking down inflation by region, urban CPI inflation decreased to 4.4 percent year-on-year in December 2024, down from 5.2 percent in November and 30.9 percent in December 2023. Month-on-month, urban inflation dropped by 0.1 percent.
Rural CPI inflation also decreased to 3.6 percent on a year-on-year basis in December 2024, compared to 4.3 percent in November and 27.9 percent in December 2023. On a month-on-month basis, rural inflation rose by 0.3 percent.These figures reflect a notable easing of inflationary pressures in Pakistan, which could signal relief for consumers in the coming months.
